Navigation

FOMC Signals Two Hikes in H2, Sends Greenback Higher

The Federal Reserve hiked the Fed funds target rate by 25 bp as universally expected, and signaled two hikes are likely to be appropriate in the second quarter. It was very close call in March, and here in June, one policymaker went from one hike to two. That is the source of the change. As Chair Powell indicated, most forecasts were unchanged since March.
The FOMC is still looking at a terminal rate of 3.375% in 2020. The path has been tweaked slightly in today's Summary of Economic Projections.
The Fed upgraded its economic assessment, though it still sees the 4.5% as full employment. The rate currently stands ... (full story)